A downturn is a normal part of a functioning economy. Upturns and recessions keep coming. Planning plays the role to parse uncertainty and lessen the impact of a prevailing and future recession on your business. One cannot ride the highs too high or the lows too low. One has to rebalance and deal with the risks.
Let’s see how one can craft a business strategy to navigate this pandemic and energize business continuity amid economic mayhem.
Business practices to follow during a recession
Economies fluctuate and one cannot say we can think if a recession occurs. Recession is never an if, for it is definite. The thing is we don’t know when. So, it is essential to get prepared in advance. Here are some thoughts and a few professional practices one can follow during the worst economic times.
Business strategists must have a business strategy framework that gets updated and reviewed periodically as per the business case.
The first step for any business is to develop a positive mind. Anxiety creates a downward spiral of failure. As a business strategist or entrepreneur, it is critical to evaluate a situation from a realistic standpoint. The focus of the mind should not get distracted with emotions. Living at the moment helps the mind to find positivity in adversity. It is recommended to spot the good thing and take advantage of it in every situation.
It is understood that the economic conditions will be brutal for many amid a recession. But a different experience comes to those who see differently. Choose proactiveness over reactiveness to find an answer in all situations.
Businesses are all about service at the core. To make the best of deals, the foremost thing is to become service-minded and make an effort to make a difference in the lives of people. Services distinguish itself in the market creating more opportunities to grow higher and gain a competitive position in the market.
Create an emergency corpus
An emergency fund is critical for a business or a family. It is recommended to build a kitty as the first step in any financial plan for the business. The rule of thumb is that the corpus should be enough to fund at least six months’ expenses. Given the rising uncertainty, a larger fund seems to be a better option.
Look for alternative realities
Though the world is under lockdown, life is not on a standstill. Business transactions are on the move. For instance, essential goods have seen an increased market cap. The secret to success is to sell what people buy.
At this moment of pandemic crisis, people need several things like redirection in work and careers, manage homeschooling, essential goods at doorstep, medical accessories, and many. Sell essential products and services. Selling what people need uniquely and cost-effectively can become a successful business strategy.
Be connected with buyers or clients
It is recommended to give clients or buyers a scheduled call, email, or message through apps. It is crucial to get connected with buyers and understand their preferences. Buyers tend to become loyal to entrepreneurs and businesses when they are served right with the right products and services. Gain customer loyalty with excellent products and services in demand.
Meeting present needs ensures business continuity and generates income. Businesses can scale to other products and services as the economic recovery takes shape. Also, one can partner this business as required.
Use a down market to grow
A market downturn exposes flaws in the practices or marketing plan. It gives ample opportunities and time to revisit the business strategy framework. Your business can look forward to updating the marketing plan and business strategy framework.
An expert and an experienced business strategist can help to focus on multiple niches or target markets to grow business. Leverage repayment history, and maintain a mechanism for loan restructuring if any.
Identify at-risk clients and employees
Many businesses cut the bottom 10% of performers to foster a culture of performance, improve the bottom line, reward, attract, and retain high performers.
Tough times or reversals are an opportunity in disguise to invigorate your business practices. One cannot hide and sit thinking storm will get over. One has to get into the field to overcome the storm. A multi-pronged plan of attack paves the way to ward-off at-risk clients or improve underperforming employees.
A strong business strategy framework helps businesses to get going amid a recession. Well-planned thoughts and actions carry business a long way with long term success.
Prepare for long-term success. Identify ways for the entire team and business to do more with less. Ensure and identify options beforehand, rather than when the pinch is felt. Be prepared always to spot the opportunities amid a downturn or upturn. Keep moving the business toward success with a well-crafted plan.